April WPI inflation eases to 5.2%

New Delhi, May 15 (PTI): Inflation declined to 5.2 per cent in April as prices of food items and fuel fell. Inflation measured in wholesale price index was 5.7 per cent in March.

According to government data released Thursday, the WPI inflation in the overall food segment eased to 8.64 per cent in April, from a high of 9.9 per cent in March.

Onion prices contracted 9.76 per cent in April as against a rise of 1.92 per cent in the previous month.

There was a drop in the rate of price rise in protein rich items such as egg, fish and meat to 9.97 from 11.19 per cent in March.

Although there was increase in potato prices, the overall inflation in the vegetable segments eased to 1.34 per cent from 8.57 per cent in March.

Fruits were marginally costlier in April as compared to the previous month.

The WPI data further showed easing inflation in fuel and power segments and the manufactured items group. The rate of price rise in the fuel and power segment was 8.93 per cent, as against 11.22 per cent in March.

Inflation based on Consumer Price index, on the other hand, had shot up to a three-month high of 5.59 per cent.

The RBI considers both the inflation data, along with other economic indicators, while deciding monetary policy.

Amid demand for reduction in key interest rate to boost economy, the Reserve Bank's monetary policy review on June 3 would be keenly watch.

In April, it had chosen to keep the policy rate (repo) unchanged at 8 per cent in as retail inflation was “sticky”.

Meanwhile, the government has revised the February WPI inflation upward to 5.03 per cent from earlier estimate of 4.68 per cent.

In April, 2013 the WPI inflation was 4.77 per cent. Build up in inflation in the 2013-14 fiscal was 0.22 per cent, compared to 0.71 per cent in the previous fiscal.